New Ulm weekly review. [volume] (New Ulm, Minn.) 1878-1892, 1887-01-12

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charge, thus securing good stage Of water for
. the largest steamers throughout the season of
nay The work for the improvement of
Z the channel of the upper Mississippi is embar-
I raised Oh account Of the meager appropriations
81 the purpose, but most substantial benefit
ssAs accrued from the expenditure already made
II The wonderful and perhaps unprecedented
growth OF the commerce of Duluth, and rapid
development of the mineral resources OF our
territory bordering the lake, present in COM
manding form the Importance and necessity of ,
T q Improvement CT our harbors on Lake Supe-
s. nd the enlargement of the Sault Ste. Marie
I'll full presentation of 6he facts ill STRAIT
IN e influence and effect of these waterways
N development OF resources would
a revelation even to many of our own peo-
q; accurate statistics Of the commerce of our
n ind lake ports, collected and published in
m Ir general distribution, would prove use
n: demonstrating the utility Of the improve
=. desired. I would therefore recommend
8 mi che river commission be authorized to incur
~ ,,Spense necessary tor the collection of such
~ Ibsistics, the same to be reported annually to
9sShe governor. A proper expression OF this leg
klsaGure, addressed to congress respecting needed
appropriations for our waterways, would doubt
Sless aid representatives in that body i'll their
eSSsssprts to secure the recognition demanded.
sssl response to a manifest demand of the pub
q, Slnterest and the pOpclar will, the legislature
tof 1885 inaugurated new policy of state con-
! troll OF railway and warehouse management The
/ laws enacted for the supervision and regulation
of these interests have been on trial for the past
4 WO years, and the results accomplished there
;under submitted to you by the board of
(eommissioners, who were specially charged with
4 their execution
h The work OF the commission has been labori-
sous, difficult in many OF it's details extremity
I3ing more substantial results than could reason
N ably have been expected from the administra-
{ ton Of laws necessarily imperfect. inasmnch as
IYhey were largely experimental. An early noted
defect in the Ia" for the regulation OF railroad
/ companies" was the limited power vested in the
commission This often proved an embarrass-
waited the effect. They could advise re
quest" aud in exceptional cases promulgate
\ t,.;
rqad companies. but compliance, as 1ule.
n k&G be obtained only by the volun-
St9y action of the corporations them
ton that so much has been realized in the way
of relief Briefly outlined, there has been Sc
cured under this law, through the agency OF the
commission, free and open market with the
right Of unrestricted shipment for grain
every line OF railway i'll the state save one: a
material reduction on all the roads" of rates
charged for the transportation OF grain. live
stock lumber, wood and general farm products,
amounting III the aggregate TO over one million
I dollars Der aunum: q general reduction OF all
| passenger tariffs to maximum charge of three
tents per mile. and virtual abolition of the
oious transit system, by an elimination OF It's
. oojec ionable and burdensome features.
These results have been reached through the
.ratlenJ persistent and often prolonged efforts OF
tle commission. involving an exhaustive inves-v
tgation OF the subject OF TAI! way transportation
Iin its many phases and to its remOUest detail,-
Il I'D elaborate illustration bv comparison of its
Etlative cost as between different companies
p 4}der varied and diverse cocditlous. The facts
h7eoped by this research fortified tn icommis-
SION in the presentation of its &c nands upcn the
1ompt MES, and secured concess ions which other
Use it would hardly have been possible to OBJ
Ein. In but one instance has the commission
lad to resort to the courts to enforce its de-
mands, and in this case the lower court has de-
cided in favor of the law. The cause is now
pending in the supreme court
Minnesota has now fairly inaugurated pol
Icy respecting state supervision and control Of
railroad companies, which, if sufficiently
I STRENGTHENED and wisely and firmly admins
S-i1 lno6 hn1in f0 S11Cl, of,11
just adjustment Of the relations that should OBJ
tain between these corporations and the public
/ as is possible under separate and independent
! state action. The problem cannot, however.
! reach solution entirely satisfactory until the
general government shall supplement state ac-
tion by the adoption Of federal policy which
SS,all have in view the determination of ques
Stons relating to interstate commerce. The
ayEblc sentiment of the country, with marked
unaniulty, is demanding of congress legislation
TO TINS end 1t remains TO be seen how long ad-
verse influences shall postpone its enactment.
The commissioners recommend such amend
ments and changes in the law as their expert
ence and investigations have suggested
necessary to make it more effective. l bespeak
for them your hearty Endorsement, and I earn
estiy invoke your early action respecting the
additional legislation contemplated in the drafts
of laws they submit for your consideration.
, Clearly, in my view, the commissioners should
be authorized to revise and amend the tariffs OF
4 the railroad companies respecting rates charged
for trans portation Of freight and passengers. If
Epon complaint, or otherwise, it shall appear to
e he commission, after careful Investigation, that
.Ns1ach rates are in any respect unequal unjust
1 or unreasonable, it should be authorized to re-
YOU'RE and compel such changes as shall make
them equal, reasonable and just. There can be
no good ground OF objection to this reeulatlon
upon the part of the companies themselves. In
| deed they should rather wish to see it estab-
iished, as the process of Its enforcement would
give opportunity Jor such vindicatlon of their
hequitable policy respecting the public as the,
Facts in each case would warrant.
The excessive and fictitious Capitalization of
:, the property OF railway companies is proper
subject for legislative consideration. It is no
Joriously the pracJice of these companies, after
realizing from the sale of their bonds money
sufficient to build and equip their lines, to issue
in addition stock to an equal or greater amount,
representing rule no value whatever, but
appropriated gratuity by the syndicate
controlling the franchises Of the company. To
give these false issues of securities real value,
dividends mnst be earned by the road and paid
thereon. The practical effect of this is the perpe
tration OF fraud upon the public Rates of trans
fportation must be fixed high enough to realize
net earnings sufficient to pay these dividends
after fixed charges are met. AS rule, ii COM
plant is made that rates are high and that COM
mCdltcs will not bear cost OF transportation,
the company responds that it is charging only
what is necessary to earn a fair income upon its
Investment. and perhaps, refers to its sworn
statements made to the board OF commissioners
sto the amount of such investment, which al
Rays includes such overissue of securities.
f ais practice does not require elaboration to eX-
kSse its oppressive and dishonest character, but
!tloudly calls for remedy. The drafts tor acts
propoposed by the commissioners, to prohibit
the issuing of false, fraudulent, and part-pad
or unpaid shares OF stock OF railroad COM
panies," and to regulate the proceedings of
railroad companies desiring to increase their
capital stock" will protect the public against q
growth of the evil. The evident remedy, as re-.
CARDS existing corporations, is an adjustment
of their revenues and dividends upon the basis
of fair and liberal estimate OF the actual cost
or value Of their properties.
The incorporation into the fundamental law Of
the state OF an amendment asserting the full
power OF the state as TO corporate control is
recommendation of the commissioners in which
I cordially concur. Though this principle is
sustained by the courts it is not wholly admit
ted by the corporations AS authority COM
ing from the constitution it would command ac-
quiescence
1.-THE labors Of the board under the law for the
Regulation of warehouses and the inspection OF
ain have resulted in the inauguration of a sys-
N OF state inspection and weighing which has
v9orked most satisfactorily. The grades estab-
!zshed and rules adopted by the board for the
handling of grata have had the effect to remove